Global logistics real estate specialist GLP has raised €1.1bn from global investors for its latest European fund.
GLP European Income Partners II (EIP II) will provide investors with immediate exposure to a €1.6bn portfolio, comprised of assets bought from Goodman Group for €1bn earlier this year and other off-market deals.
It is fourth European fund launched since Singapore-headquartered GLP entered the European market via the €2.4bn acquisition of European logistics business Gazeley in 2017.
GLP EIP I was formed to hold Gazeley’s existing, income-producing assets. GLP has since launched two European development funds.
Ralf Wessel, managing director of fund management, told IPE Real Assets, that, with debt financing, the fund had capital reserves to add more assets to the portfolio, which already encompasses 1.9 million sqm across 25 locations in nine countries.
He said GLP planned to raise more equity for the fund, but had not set a target for a final close.
Investors in the first close include existing and new limited partners. Wessel said investors around the world were trying to rebalance portfolios, away from sectors that have been most affected by COVID-19 disruptions.
“The bigger winner absolutely is logistics,” he said. “There is a wall of capital trying to find its way out of retail and out of hotels and into logistics.”
COVID-19 has accelerated the shift from physical shopping to online commerce, with even more “food retailers, pharmaceuticals, daily goods all needing more space in logistics centres”, he said.
“On the other side, capital markets are trying to find safe havens for capital whilst rebalancing their portfolios.”
GLP manages €9bn in European logistics assets and Wessel says the region has been identified as a “strong growth market” for the company.
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